Prices will inch up this year

By Staff -- Purchasing, 2/10/2000

"Prices are firming," says one sodium bicarbonate producer. "Rhodia's exit from the marketplace made supply a little tighter, which brought pricing up a bit.

Producers, led by Church & Dwight, boosted USP-grade tags by about 1¢/lb and industrial-grade prices by about 1/2¢/lb in October. These increases appear to have stuck.

According to buyers who responded to Purchasing's monthly chemical transaction price survey, sodium bicarbonate (USP grade) prices are currently about 18¢/lb for spot tags and 19¢/lb for contracts. Industrial-grade prices average slightly more than 15¢/lb for spot tags and contracts.

Buyers should look for prices for both grades to inch up a few ¢/lb in the first half of the year, before flattening in the third quarter.

Supply: Adequate

Last year, Rhodia sold its sodium bicarbonate production capability at its Chicago Heights, Ill., plant and exited the market. This effectively removed about 70,000 tons/yr of sodium bicarbonate capacity from the marketplace.

Capacity expansions began in 1999 at Church & Dwight, FMC Corp. and IMC Global. Church & Dwight is boosting capacity at its Old Fort, Ohio, facility by about 40,000 tons/yr. In addition, a planned debottlenecking at its Green River, Wyo., plant should free up an additional 40,000 tons/yr.

Also, in the fourth quarter of 1999, IMC Global debottlenecked its White River, Colo., facility. Annual capacity there is estimated at 110,000 tons/yr.

Capacity utilization is in the range of 90%-95% for industrial-grade material, while utilization rates for USP sodium bicarbonate are slightly higher than that, says one producer.

Demand: Steady

Historical demand estimates place sodium bicarbonate demand growth at about 4%/yr.

The continued health of the U.S. economy, coupled with economic recovery in Asia/Pacific and increased exports, have kept demand fairly strong.

In addition, new product applications in the pharmaceutical and personal care market segments have shown some modest demand growth.

Also, demand for sodium bicarbonate is growing in medical applications, particularly in hemodialysis, according to one producer.

Markets: Diverse

The North American market for sodium bicarbonate is dominated by food and in agriculture as a rumen buffer in cattle feeds.

Other applications include cleaning products, as a chemical intermediate, in the pharmaceutical and personal care markets, in water treatment applications and in the manufacture of abrasive blasting media. mProducers and annual capacities

(Plant location) (1,000 tons/yr)

Church & Dwight & Co.

Old Fort, Ohio 280

Green River, Wyo. 240

FMC

Green River, Wyo. 95

Natrium Products

Cortland, N.Y. 15

IMC Global

White River, Colo. 110

Total: 740

SOURCE: PURCHASING